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When Will Home Prices Get Back To the "Normal" High?? Depends on what the meaning of "normal" is.
Lenn's blog about the "normal" high is must read for real estate pros, homeowners and those thinking of buying property. It really puts the housing market in perspective as to where it has been and where it likely is heading.
"HARD CORE REAL ESTATE TALK"
JUST WHAT IS THE "NORMAL HIGH" FOR RESIDENTIAL HOME VALUES?? What does it mean to real estate agents who depend on home sales for their income??
Many see the extreme highs of home prices in 2007 as "normal high". The question is, was that "normal". Or, is it simply wishful thinking???
THE BENEFIT OF HAVING AN INSTITUTIONAL MEMORY. Over the many years I've tracked market values for residential real estate, the yard-stick for projected appreciation was always annual inflation rates, which, in my area, on average were about 3%. You could actually project that as a likely value metric for cities and counties in Virginia, somewhat less in Maryland.
I recall the last "bubble" in our area of Maryland and Northern Virginia, the mid to late 1980s when the real "normal" price appreciation was about 3% but then fell through the floor in 1989-1992-3.
Montgomery County MD lost about 15% of market value.Prince George's County MD ... more
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